GOP running from the truth, but can't hide

Bob Perry, Houston area home builder and Cong. Dist. 22 resident, continues to spend BIG money (multi-millions) to control elections. In 2004 he set up the money for the so-called "Swift Boat Veterans for Truth" that in ten days in the summer of 2004 cost John Kerry the presidential election. Now, he's spending $5 million to try to stop the GOP hemmorging to save their control of Congress.

This might be a little harder this year as the GOP culture of corruption continues to eat away at any positive feelings the electorate may still have for the GOP control of Congress. The latest spike is Congress Mark Foley who resigned yesterday after his penchant for Congressional Page (boys) became public.

The GOP's having a very hard time running from the TRUTH, and it certainly can't HIDE!

A political Mr. Buffett?

By RICK CASEY
STAFF

HOUSTON homebuilder Bob Perry came to national attention two years ago when he gave more than $4 million to a group called "Swift Boat Veterans for Truth."

Now he's back in the news around the country in connection with $5 million in donations he gave to an outfit called the Economic Freedom Fund.

Swift Boat Veterans used Perry's money effectively to attack Democratic presidential candidate John Kerry's accounts of heroism in Vietnam, for which he was awarded three Purple Hearts, a Silver Star and a Bronze Star.

The Economic Freedom Fund, which so far has received few donations other than Perry's, has targeted for attack a handful of Democratic congressional candidates in competitive races in Georgia, Indiana, Iowa and West Virginia.

There's plenty of that going around, but what has earned the group (and Perry) publicity is that the attorney general in Indiana has sued the Fund for violating a state law banning mass recorded phone calls.

Telemarketer fighting law

Politics at play?

Not likely. Indiana Attorney General Steve Carter is a Republican.

What's more, he subsequently went to court against a group using recorded phone calls to attack a Republican congressman.

Carter had sent out a letter to both state parties announcing that he intended to enforce the 1988 law in regards to political phone calls, even though it generally had not been enforced in such cases before.

The Fund agreed to a court order prohibiting the calls until the suit is tried, which won't happen until after the election. The penalty can range as high as $5,000 for each violation. The company the Fund hired to make the calls is challenging the law's constitutionality, saying it violates free speech protections and inhibits interstate commerce.

Ambitious campaign

Other than Perry, it is unclear who is behind the Economic Freedom Fund. The only name included in publicly filed papers is Charles Bell Jr., an election law specialist who serves as general counsel for the Republican Party of California.

Bell has not returned reporters' phone calls, including mine, and a spokesman for Perry said he would not comment.

The phone calls are just one part of the ambitious campaign. Most the money is being spent on TV ads attacking Democratic candidates with titles such as, "The Tax Man," "Double Life," "Who Is This?" and "Cheek."

The Fund is using the same Virginia media firm - Stevens Reed Curcio & Potholm - that did the Swift Boat ads attacking Kerry.

The controversy has received coverage in the states involved, as well as in Time magazine.

Individual contributors are limited by law to $4,200 in contributions to congressional candidates. But "527 committees" such as the Economic Freedom Fund can spend unlimited amounts to attack candidates as long as they don't coordinate their activities with the candidates they support.

Two years ago, Perry ranked fifth in donations to 527 committees at just over $8 million, according to Federal Election Commission figures listed on a Web site called opensecrets.org.

All four high rollers above Perry, led by billionaire investor George Soros at $23.5 million, gave to liberal groups such as MoveOn.org.

But times have changed.

Other than Perry, the top 527 contributor this year is Univision owner Jerry Perenchio at $4 million. It all went to a group called Progress for America, which runs slick ads supporting the war in Iraq.

On a recent visit to Houston, Soros said he has cut back his 527 giving. FEC records show him at $1.9 million.

His 2002 527 investments didn't do so well.

Perry, on the other hand, had a significant impact on the presidential election with $4.5 million to the Swift Boat guys.

If his $5 million this year is seen as helping hold on to Republican control of the House of Representatives, the reclusive homebuilder will be to political "investing" what Warren Buffett is to the stock market.